World Bank's $6 billion aid package to propel Egypt's economic growth

Posted on March 22, 2024   |  

Egypt's economy is set to receive a significant boost with a $6 billion financing commitment from the World Bank over the next three years.

S&P's upgrade of Egypt's credit rating adds to the positive outlook for the country's economic growth.

The $6 billion funding will be divided into two installments of $3 billion each, supporting various government programs and the private sector.

The World Bank's initiatives will focus on reforming Egypt's economy, including a planned sale of state-owned companies and improving governance in public resource management.

S&P's decision to upgrade Egypt's credit outlook to "positive" reflects expectations for improved external positions.

Recent financing agreements, notably with the UAE, have helped Egypt address financial challenges for the next four years.

The float of the Egyptian pound, facilitated by the UAE deal, has helped mitigate the growth of the currency black market.

The IMF finalized a financing package for Egypt, raising it from $3 billion to $8 billion, following successful economic measures implementation.